Sustainability Stories | TSMC ESG Case Sharing

TSMC Becomes the First Semiconductor Company in Taiwan to Receive "Other Effective Conservation Measures" Certification, Creating a New Paradigm for Green Facilities

Acting on the principles of its "Biodiversity Statement", TSMC dedicates itself to biodiversity protection through its "Eco Plus! Ecological Harmony Program." Following the successful restoration of the endangered squalidus banarescui fish within its fab premises in 2025 – a first for a Taiwan company – TSMC launched " Leopard Cat Friendly Day" in 2026. In addition, Fab 15A was among the first batch of applicants to receive Other Effective Conservation Measures (OECM) certification from the Ministry of Agriculture's Forestry and Nature Conservation Agency. This achievement makes TSMC the first semiconductor company in Taiwan to gain this certification, underscoring the company’s commitment to green manufacturing and harmonious coexistence with habitat ecosystems. To further encourage the cultivation of ecological talent, TSMC also added an "In-depth Cultivation Award" to its second "TSMC Biodiversity Scholarship and Proposal Grant" program, expanding conservation capability across industry, government, academia, and research. To celebrate the second anniversary of the "Eco Plus! Ecological Harmony Program" as well as International Biodiversity Day, TSMC held a "Eco Decode Biodiversity Power Up!" event on May 22, 2026, rallying 309 employees and partners to join ecological volunteer efforts and protect biodiversity together.

TSMC Regenerates Electronic-Grade Carbon Dioxide to Aid Green Transformation

Supply chain carbon management is integral to TSMC's net-zero emissions transition. Following collaboration with an ammonia supplier to introduce blue ammonia produced using Carbon Capture and Storage (CCS) technology, TSMC has partnered with a hydrogen peroxide supplier on carbon capture. This new initiative focuses on capturing and purifying tail gas emissions from the hydrogen peroxide production process, transforming them into electronic-grade carbon dioxide that meets semiconductor manufacturing quality standards, raising the value of resource circularity. In May 2026, the regenerated electronic-grade carbon dioxide from this collaboration was adopted at Fab 14B with an estimated annual carbon reduction of approximately 1,200 metric tons, strengthening the resilience of TSMC’s green supply chain. Recycling Tail Gas, Transforming into High-purity Electronic-grade MaterialsBoth hydrogen peroxide and electronic-grade carbon dioxide are crucial chemicals in semiconductor manufacturing. The upstream hydrogen production process, necessary for producing hydrogen peroxide, emits tail gas containing carbon dioxide. To enhance supply chain sustainability and put circular economy principles into practice, TSMC and its supplier jointly set plans to install a dedicated recovery pipeline system at the hydrogen plant. This system captures tail gas emitted after combustion or reaction, channels it into raw material storage tanks for centralized collection, and then uses adsorption-desorption towers to remove residual hydrogen. Next, a purification tower separates impurities and enhances purity, resulting in electronic-grade carbon dioxide.To ensure that regenerated electronic-grade carbon dioxide meets the stringent high-purity standards required for semiconductor manufacturing, TSMC not only guided the supplier in establishing a comprehensive Certificate of Analysis (CoA) mechanism during the production phase to ensure each batch meets specifications, but also provided specialized technical support. This included assisting the supplier with tail gas composition analysis and purity testing, and guiding adjustments to operational parameters during the purification process to enhance separation efficiency and gas purity. TSMC also helped the supplier to optimize factory production line operations and tank truck purge standards to mitigate impurity risks, and conducted on-site audits to review production management processes, comprehensively improving the supplier's technical capabilities and quality control standards.

TSMC Pioneers a New Era in AI-Powered Trade Secret Management, Achieving Intelligent Innovation

TSMC is actively committed to intellectual property protection, and is continuously strengthening its core competitiveness through the Trade Secret Sustainable Intelligent Management Center. To further drive technological innovation and sustainable development, TSMC launched the new "Trade Secret Creativity Integration Partner (CIP) Intelligent System" in 2026. This system integrates Generative AI technology to conduct in-depth analysis of trade secret registration cases, assisting employees in uncovering innovative potential and simultaneously enhancing the technological value of "Golden Trade Secrets." This initiative sets a new paradigm for trade secret management, transitioning from "Preserving Innovation " to "Pursuing Innovation." TSMC also shared this achievement at the inaugural "Trade Secret Intelligent Management Expo and Workshop" in April of this year, attended by 22 companies that have established trade secret registration systems and over a hundred partners from other technology companies, promoting the industry’s prosperity together.From Evaluation to Recommendation: Unlocking a New Mode of Human-AI CollaborationSince establishing its trade secret registration system in 2013, TSMC has accumulated 670,000 registered cases, among which 3,858 have been awarded the prestigious "Golden Trade Secret Award." To further cultivate talent and spark innovation, TSMC developed the "Trade Secret Registration Innovation Index Analytics System" in 2023. This system was the first to use an AI model to identify inventors with innovative potential who had not yet received awards, and paired them with award-winning colleagues for one-on-one mentoring. By 2025, this initiative had nurtured 120 inventors with innovation-potential, 22 of whom successfully received the Golden Trade Secret Award.Building on accumulated innovative achievements and talent cultivation experience, TSMC has once again made another breakthrough in 2026 by developing the "Trade Secret Creativity Integration Partner (CIP) Intelligent System," based on Generative AI technology. This system incorporates an in-house Large Language Model (LLM) and integrates Retrieval Augmented Generation (RAG) tools. It also utilizes Golden Trade Secret Award registration data for supervised learning training, ensuring the model possesses the ability to identify and create technological innovations that meet TSMC's high standards. It can precisely extract key technical features from different registration cases and analyze variations in their innovation levels. Through human-AI collaboration, the system effectively evaluates and ranks registration cases, generates specific explanations and forward-looking recommendations, and even offers perspectives previously unconsidered by the registrants. This inspires deeper, more comprehensive thinking while providing the evaluation committee with a recommended list of Golden Trade Secret Award candidates. The result is a significant enhancement in TSMC's competitive advantage in trade secret management and innovation.

TSMC Adopts Two-Pronged Approach to Build a New Base for Water Resources Learning

TSMC is committed to sustainable water resource management, effectively enhancing water recycling efficiency through its four key water-saving measures. At the same time, the Company actively invests in the development of recycled water technology, establishing the TSMC Southern Taiwan Science Park (STSP) Reclaimed Water Plant to diversify water sources, and has designated "Water Positive" status as a long-term strategic goal. To deepen both internal and external understanding of sustainable water resource management, TSMC focuses on two main educational promotion themes: "Fab Water Management Actions" and "Reclaimed Water Plant Exploration Journey." Through a variety of courses and guided tours, the Company raises the awareness of employees and the public and encourages them to support water resource protection. As of April 2026, the cumulative number of participants has exceeded 6,800. Furthermore, TSMC collaborated with the TSMC Charity Foundation to host the first-ever Reclaimed Water Plant Family Camp, where parents and children collectively explored the operation of the reclaimed water plant firsthand, adding new energy to the promotion of sustainable development.

TSMC's Global Inclusion Initiatives Engage Over 15,000 Participants

On March 20, 2026, TSMC held its 2026 Inclusion Day Award Ceremony, honoring 99 Inclusion Champions who have deeply embedded the spirit of inclusion through their daily actions. Among them, four colleagues from TSMC (China), TSMC (Nanjing), the European subsidiary, and TSMC Washington, LLC were recognized. They not only became practitioners of inclusive culture in their respective regions but also contributed invaluable experience and strength to the promotion of TSMC's global inclusive culture.Gathering Global Strength to Deepen the Impact of Inclusive WorkplaceTo encourage employees to internalize the philosophy of inclusion and sustain their participation, TSMC launched the Inclusion Champion Program in Taiwan starting in 2024. This was followed by the inaugural Inclusion Day in 2025, which recognized Inclusion Champions and Employee Resource Groups (ERGs) through an award ceremony. Multiple ERG executive sponsors personally attended to express their support. In line with its global expansion strategy, the 2025 Inclusion Champion Program expanded its scope to include global fabs. In total, 33 initiatives were promoted. The focus areas also broadened from gender, nationality/ethnicity, and disabilities to include diverse fields such as sexual orientation, strengthening support and development for a wide variety of groups, drawing 15,518 participants in total.Beyond the increased breadth of topics and number of initiatives, 2025 Inclusion Champion Program also brought together more internal and external organizations. Internally, it covered a wide variety of organizations such as global sites, ERGs, Learning and Development, Employee Services, Employee Experience, Wellness and Health, and the Employee Welfare Committee. Externally, TSMC collaborated with professional associations and non-profit organizations to jointly promote inclusive action plans. These initiatives included experiential activities, specialized lectures/sharing sessions, workshops/learning programs, festive celebrations, and online and multimedia promotions, expanding social impact both internally and externally.

TSMC Launches New "Leadership Framework" to Enable a Sustainable Talent Ecosystem

TSMC is committed to becoming an admired employer and is dedicated to realizing its people vision. As TSMC continues to expand its global footprint, the Company officially launched the “TSMC Leadership Framework 4×5×4” in the first quarter of 2026. This framework aims to accelerate talent development and drive organizational innovation, built around four core themes: “Growth Mindset, Drive for Excellence, People-Centric Principle, and Future Pioneering.” These themes are further extended into five key behaviors and are applicable across four organizational levels. Through this systematic design, all employees are empowered to enhance their leadership skills, enabling them to fully utilize their strengths and work together with the Company to create sustainable growth.

TSMC's "Lithium Iron Battery Generation Upgrade Project": Next-Level Safety for 408,000 Batteries

TSMC is committed to improving sustainability risk management. The Company is gradually replacing lead-acid batteries with lithium iron batteries in uninterruptible power supply (UPS) systems for new and existing fabs to save energy and achieve other environmental benefits. For this project, TSMC partnered with suppliers and internal and external experts to launch the "Lithium Iron Battery Generation Upgrade Project." This initiative aims to further strengthen operational environmental safety and battery energy management. The project involves inventorying and optimizing approximately 408,000 lithium iron batteries across domestic and international fabs, and validating battery safety performance as well as the effectiveness of Battery Management System (BMS) protection through Thermal Runaway experiments. By Q1 2026, first and second-generation lithium iron battery management systems were successfully upgraded entirely to the third generation. This new system can precisely detect voltage, state of charge, current, temperature, and state of health, and instantly transmit this data back to the fab's Supervisory Control and Data Acquisition (SCADA) system, improving energy storage safety and management efficiency.Advancing Intelligent Safety Management with Three Generations of EvolutionLithium iron batteries, with their high energy saving, long cycle life, and environmentally friendly characteristics, have become crucial components for stable UPS operation and optimized energy efficiency. After completing in-fab production line verification in 2017, TSMC began using first-generation lithium iron batteries. These were monitored for voltage via sampling boards to ensure system operational safety. In response to the International Electrotechnical Commission's IEC 62619 Safety Requirements for Secondary Lithium Cells and Batteries industrial applications, TSMC adopted second-generation lithium iron batteries in 2018. The BMS (Battery Management System) in these batteries added monitoring functions for state of charge, temperature, and state of health in addition to voltage, improving the monitoring of battery status.To deepen its continuous investment in battery technology and comply with the NFPA 855 Standard for the Installation of Stationary Energy Storage Systems published by the National Fire Protection Association (NFPA), TSMC began research into third-generation lithium iron battery applications with suppliers in 2019. The third-generation BMS is able to monitor critical parameters such as voltage, state of charge, current, temperature, and state of health. It also integrates with the factory's SCADA system, enabling real-time data transmission and remote diagnosis. If abnormality occurred, it can identify fault point immediately, which improves the efficiency of handling emergency responses by 25%. Furthermore, in 2024, thermal runaway experiments were conducted on the lithium iron batteries to verify their safety performance under extreme conditions, laying a reliable foundation for upgrading existing systems.

TSMC's ESG Points Incentive System: Creating a New Model for Sustainability Engagement

Sustainable competitiveness is pivotal for enterprises to maintain operational resilience in a rapidly evolving world. In line with its five ESG Directions, TSMC has adopted three major strategies—Knowledge Construction, Innovation Cultivation, and Responsive Action—to foster an internal culture of sustainability. To leverage the core strength of full employee participation, the ESG Points incentive system was launched in 2024. This program integrates six ESG-themed actions, motivating employees to practice sustainability by scoring points while competing for annual honors and sustainability rewards. As of March 2026, 55,951 TSMCers have enthusiastically responded, cumulatively completing 197,161 sustainability actions and receiving 37.7 million ESG Points. To further recognize these achievements, TSMC hosted the inaugural "ESG Points Annual Gala" honoring 21 Sustainability Stars at an award ceremony. Additionally, a new sustainability lifestyle lucky draw was introduced, allowing employees to exchange 100 ESG Points for one entry. This initiative encourages broader employee engagement in sustainability practices, fostering a positive cycle of "Response, Engagement, and Recognition".

TSMC Family Day Undergoes a Major Transformation and Attracts a Record 300,000 Participants

TSMC Family Day in 2025 launched a brand-new format, setting a record for participation with a creative approach that resonated deeply with employees. The revamped TSMC Family Day centered on three key pillars: "Environmental Sustainability, Diverse Flexibility, and Local Revitalization."  Transformation Achieved, Strong Positive Response from Employees and FamiliesTo accommodate the rapid growth in employee numbers and diverse needs, the initiative fully implemented electronic ticketing and provided each employee with 3,000 travel points, allowing them and their families to freely explore 39 carefully selected venues across Taiwan across seven months. This transformation moved TSMC Family Day beyond the traditional single-theme amusement park format, promoting diverse cultural experiences while also supporting local economic development. Launched in July 2025 and concluding at the end of January 2026, the event saw enthusiastic participation from 70% of employees, reaching a total of 301,632 participants – a threefold increase from the previous year. This successful transformation won overwhelmingly positive feedback from employees.Service Fully Revamped, Experience ElevatedPreviously, TSMC Family Day was held on six designated dates annually at four major amusement parks. The new TSMC Family Day model extended the event period to seven months and expanded venue options from amusement parks to cultural parks, farms, zoos, and botanical gardens, offering employees greater freedom and flexibility in their leisure experiences. To ensure high-quality service and a seamless e-ticket experience for all participants, TSMC collaborated with an app platform provider and the 39 venues to complete system integration, stress testing, training, and on-site drills. This ensured consistent operational procedures and service quality across all locations. Additionally, comprehensive user guides were provided to assist employees with account activation, ticket redemption, and entry processes, making participation smoother than ever.

TSMC Charity Foundation Ignites Hope for Hualien Flood Recovery

The TSMC Charity Foundation holds a long-term commitment to social welfare, actively connecting resources from many levels of government as well as across industries, while also training TSMC employees for volunteer service. In September 2025, the Guangfu area of Hualien County suffered severe flooding after a barrier lake upstream of Matai'an Creek overflowed its banks. Following the community-led "Shovel Superheroes" desilting campaign, the foundation launched a professional recovery campaign from December 2025 to February 2026. Partnering with professional window repair contractors, cleaning services, and local Hualien farmers, the initiative focused on "Window Repair, Home Sanitation, and Rice Donations for Disaster Relief". Through 11 sessions of the foundation's "Rag Superheroes" volunteer service, the foundation helped victims restore safe and hygienic living environments. Additionally, an internal fundraising project at TSMC garnered support from nearly 3,000 employees, donating a total of NT$10.31 million to provide solid support for rebuilding homes.

TSMC's New ESG Course Empowers the Supply Chain to Build Sustainability Capabilities

TSMC is committed to advancing sustainable supply chain management. The Company has built an open educational platform, the TSMC Supplier Sustainability Academy, providing diverse learning resources to suppliers free of charge, while also opening access to the general public to expand the impact of shared value. In response to global sustainability trends and to assist suppliers in aligning with international standards, TSMC launched three bilingual interactive courses in February 2026: From Vision to Action: A Closer Look at TSMC ESGCarry Out the United Nations Sustainable Development Goals (SDGs)From Awareness to Action: Human Rights Essentials These courses feature easy-to-understand content designed to equip suppliers with the essential knowledge and practical approaches for sustainable development. By fostering deeper understanding and implementation, TSMC aims to enhance industry-wide co-prosperity.

TSMC Strengthens the Local Semiconductor Assembly and Test Supply Chain, Achieving a Win-Win in Efficiency and Resilience